Most city residents staring at higher taxes

Most residents in 13 of Lake County's 14 cities will have to shell out more in taxes for the coming year — some a lot higher — if elected officials get their way.

The increases come partly because the value of property has gone up in every city for the first time since the recession and partly because officials across the county say they need more money and are prepared to raise rates.

Proposed millage rates for every city but Leesburg are above the roll-back rate, which is the amount needed to bring in the same money as last year. The rates will be finalized by city governments next month for the fiscal year that starts Oct 1.

For the first time since the real estate bust in 2008, the overall property value in every Lake County city increased, and that alone boosts the amount of taxes that governments can collect even if rates stay the same. The value of property in Groveland topped the list, increasing by nearly 15 percent in a year. Leesburg had the smallest increase — .23 percent.

Still, most city governments also are proposing millage rate increases, too, meaning that many taxpayers will get hit twice.

For example, the value of taxable property in Lady Lake rose by nearly 6 percent, and the Town Commission there also wants to increase the millage from 3.2808 to 3.8781. That means the city would take in about 24 percent more tax money than last year.

A Lady Lake property owner who now pays $3.28 for every $1,000 of taxable value would pay about $3.88 if the change is approved. A resident with property valued at $100,000 after homestead exemptions would pay $387.81, up from $328.08.

Lady Lake, however, is in a unique dilemma. The town has to increase the millage rate to make up for $650,000 it expects to lose in communications-services fees that it charges, said Kristen Kollgaard, town manager. The extra millage will bring in $481,000 — not enough even to cover the loss.

"People understand that we have to do what we have to do," Kollgaard said. "We've kept that 3.28 millage rate for the last five years, so the only reason we have to increase it is to make up for the loss of revenue."

Some cities — Clermont, Eustis and Umatilla — proposed millage rates that were the same as this year's because of increasing property values. Howey -in-the-Hills is poised to drop its millage rate slightly but still expects to get 2.27 percent more in taxes.

Only Leesburg, which is keeping the current millage rate of 4.3521, doesn't expect to get more property tax money next year.

The increasing property values provide at least a small boost for little cities, including Howey, Mascotte, Umatilla and Astatula, which rely heavily on property taxes to pay for standard services such as the police department, code enforcement and city hall operations. Residents in small cities, who already typically pay high millage rates, also would be hit by a millage rate increase of 19 percent that county commissioners are considering.

In Astatula, where the annual median household income in 2012 was a little more than $44,000, residents could see their millage rates jump by 36 percent over last year's. Town council members have said the proposed 8.5 rate is needed because Astatula kept its rates too low in recent years.

The small town south of Tavares took a hit after housing values plummeted in 2008, cutting its tax roll from roughly $75 million to $45 million, Town Clerk Kitty Cooper said, and the value of all Astatula property rose only about 3 percent from last year.

"So the town has that issue," Cooper said. She added that the council members have received "mixed response" from residents about the proposed millage rate. It comes up for a final vote on Sept. 12.

"It'll be interesting," Cooper predicted.

Similarly, Groveland's City Council is in the process of hashing out its millage rate, which originally was proposed to rise to 6.41, a 17 percent increase over last year. However, the council is considering dropping that initial figure to 5.99, said City Manager Redmond Jones. That rate would be less harmful to citizens while still helping to close the city's budget deficit.

The lower rate "seems to have the majority of support that we'll be looking to get finalized next month," Jones said.

However, City Councilwoman Dina Sweat said she thinks a 6.127 rate would allow the city to accomplish more of its goals.

"There's needs for the city and there's wants for the city," Sweat said. "Just to have the needs, we can do it with the 5.99, but we'd have to take money from other funds. Being able to protect the city the way we would like to, we need 6.127."

Under Sweat's proposed rate, residents who own $100,000 of taxable property after homestead exemptions would pay $612.70, which is $65.70 more than they did last year. That rate would represent a 12 percent jump in the millage rate.

"It's not as much as they think it is," Sweat said of the 6.127 percent rate. "It's not completed yet and we won't know what the millage rate will be, so people can relax for a little bit."

Jones said there was some debate about the increase, but overall he is pleased with how the council and residents responded to the proposed rates.

"Our budget meetings were very contentious and very educational in a lot of ways," Jones said. "This is kind of the price to pay if we really want Groveland to grow."